United Phosphorus buys 50% in Sipcam Isagro Brasil

United Phosphorus (UPL) said on Tuesday it has acquired 50% stake in Spicam Isagro Brasil, which gives the domestic agrochemical manufacturer a foothold in Brazil, one of the biggest global crop protection markets.

Spicam Isagro Brasil was a 50:50 joint venture between two Italian groups Sipcam-Oxon and Isagro. Both Sipcam and Isagro are involved in production and distribution of agro chemicals.

"UPL, through its subsidiary has purchased 50% stake in Sipcam Isagro Brasil SA, earlier held by Isargo S.P.A., the Italian group," it said in a filing to the Bombay Stock Exchange (BSE).

However, financial details of the deal were not disclosed.

After this sale, while Isagro's stake has been bought by UPL, Sipcam will continue to hold the other 50% of the stake.

Last month, UPL had announced that it had entered into an agreement to acquire strategic stake in Spicam Isagro Brasil SA (SIB) by buying out entire stake of Isagro.

UPL with this expansion is entering the $7 billion agro-chemical market in Brazil, which ranks among the top five largest crop protection markets in the world. It also gives UPL a foothold in the formulations business.

SIB is based in Uberaba, Minas Gerais in Brazil and its forte is marketing and distribution of agro-chemicals. It also has a formulation plant in Brazil.

This is UPL's third acquisition in the past fiscal. The company had earlier acquired brand Manzate from Dupont in June 2010 and Rice Co LLC USA in December, 2010.

UPL is among the leading agro-chemicals company in the country with revenues for the year ended March, 2010 at about $1,142 million.

Shares of the company today closed at Rs 152 on the BSE, a marginal increase of 0.63% from its earlier close.